Hedge Fund Millennium Rebounds in March, Erases Losses

Losses at Izzy Englander’s $40 billion hedge fund were erased this past week as markets rebounded following unprecedented aid from the U.S. government.

Millennium Management finished last week down 67 basis point for the month, compared with a decline of 5.1% a week earlier, according to a person familiar with the matter. That fund is now up 17 basis points for the year.

Millennium Management and most other firms struggled in the first three weeks of March as the effects of the spreading coronavirus virtually halted the global economy and seized up markets from stocks to bonds to commodities.

Then came unprecedented moves by the Federal Reserve and the promise of a $2 trillion stimulus bill that was signed by President Donald Trump on Friday. That combination boosted markets last week, with U.S. stocks posting their best three-day run since the 1930s, before falling again on Friday.

A spokesman for the New York-based investment firm declined to comment.

As losses at Millennium mounted this month, the firm closed several of its “pods” run by teams of traders, a step hedge funds typically take as part of their risk-management response. The decision hit around 10 teams of traders, a person familiar with the matter said last week.

The fund, which had about 230 portfolio managers running individual teams, gained 9.8% last year and has posted annualized growth of 13.7% over the past three decades.

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